Depreciation for Land

Can anyone tell me why land's not depreciated?

Replies (3)
I dont know the perfect answer,, but logic says that every other asset has its life.... But land, in normal circumstances, can't have a predetermined life or something like estimated life....

 

Dear KS Shashidhar,

Depreciation is a measure of the wearing out, consumption or

other loss of value of a depreciable asset arising from use, effluxion of

time or obsolescence through technology and market changes.

 

Land cannot be said to loose it's value on account of use, efflux of time or technology changes or market changes

 

Further that doesn't mean that Lands value can never decrease, the resultant decrease on account of factors other them mentioned above will be said as"revaluation loss"

 

Land does not have a measureable useful life, actually it is infinite.

 

Left alone, life and quality of land does not deteriorate.

 

For land used by a business man, any adverse change in the land will be a loss, and not always a measurable/estimable expenditure...

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